Obama doesn’t need a re-election campaign, he needs a bull market.

What  put a Democrat in the White House in 2008, will keep him there for one more term. What would that be? The Stock Market. The thing that has been on a furious rally since the SPY painted $107 in October. Coincidence, I think not? Are things really that much better in the U.S and abroad to warrant a 30% move in equities since October? I guess the better question is, "who is the one bidding up stocks?". It sure isn't Blue Collar "Joe" who is currently underwater on his mortgage.  It sure isn't the mutual funds, where there were $135 BILLION in outlflows in 2011.

A picture comes to mind, the one during the cold war where the president has the "red button" ready in his office at the white house, just waiting for any sign of incoming warheads from Russia. 30 Years later, there is another button he pushes.... the one to avert financial disaster and employ the plunge protection team to do it's deed.

 

It was seen in the markets during the 2008 crisis, although it's existence is denied. Great read (here). Now it's called the "Save the President" team. Nothing excites the public more then easy money. Just take a look at what the Mega-Millions did this past week. It was a frenzy. Too bad the average Joe didn't realize how easy the market would be to trade the past few months. All anyone with a brain needed to do was buy calls on anything with a pulse.

We wrote about the BEARS trying to come out of the closet last month. Now with the Bears in hibernation, the powers that be are ready to keep this ramp going until Obama is in for re-election. Healthcare? The National Debt? Iraq and Afganistan? Do any of these issues really matter? Not when your 401k is a 401k again. Not when the old homage an "Apple a day keep the doctor away "makes you smile.

You think Obama is actually concerned about his re-election? He is in full control of this manipulated campaign. I wouldn't be surprised if his campaign funds are leveraged 1000X's on index futures.

It reminds me of a Soprano's episode. Yeah we have the jury, just wait till they let me go.  Russia is in on the deal... joke is on us.

Point being, sometimes you have to trade the trade and forget about everything else. Is the marker manipulated?? Who cares. Should we be trading much lower??? Who cares. The powers that be are controlling this right now, so trade accordingly. We have, so thank you Obama and this artificial pump. You may not be a good president, but you sure know how to pump stocks!

 

Profile photo of jimmybobJimmyBob (Scott)has been trading equities for over 15 years, a majority of which were OTC micro-cap stocks. He started trading high risk stock options over the past 7 years, and has proven winning trades in excess of 15,000%.

As one of the Co-Founders of optionmillionaires.com, Scott enjoys sharing his knowledge with other investors through timely blog posts, daily watch lists in the forum, weekly webinars, and helpful advice within the chatroom.

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